Pricing Turmoil Clouds Outlook for LTL Market

(DC Velocity – Mark B. Solomon)

Are rate wars putting truckers on a path to self-destruction?

When does rate-cutting morph into throat-cutting? That may be a reasonable question for trucking executives to ponder as they start 2010. That is, if they aren’t too busy beating each other up over pricing to think through the consequences of their actions. […]

Industry veterans have rarely seen anything like it. Michael Regan, CEO of TranzAct Technologies Inc., an Elmhurst, Ill.-based consultancy that over the years has negotiated and purchased billions of dollars of LTL capacity for shipper clients, says he’s seen discounts of as much as 90% below retail, or tariff, rates. Read more here.